Pound Breaks Through Support And May Extend Losses

Negative trading dominated the British pound against the US dollar after it failed to breach the psychological barrier of 1.3000,  we have indicated that a breach of that resistance is a prerequisite for the continuation of the buying position, explaining that the price remains below 1.2920 nullifies the bullish scenario and puts the price under negative pressure to target a re-test Pivotal support 1.2860, recording a low of 1.2862.

Technically, with the pair’s success in breaking critical support of 1.2930 / 1.2925 accompanied by the negative pressure of the 50-day moving average, the bearish bias will likely be targeting 1.2840 as a primary target, noting that breaking the latter extends the pair’s losses to 1.2780 and may extend to 1.2740.

From the upside, remaining above 1.3000 cancels the downside, and the pair heads back towards 1.3065

S1: 1.2840	R1: 1.2980
S2: 1.2780	R2: 1.3065
S3: 1.2695	R3: 1.3125